Galantas Announces Over-Subscribed Private Placement

TORONTO, ONTARIO--(Marketwired - May 27, 2016) - Galantas Gold Corporation (the "Company") (TSX VENTURE:GAL)(AIM:GAL), the AIM and TSXV quoted gold producer and explorer with a 100% interest in Northern Ireland's Omagh gold mine, announced on 11th May 2015 a proposed private placement of shares and shares for debt exchange.

The private placement, which has not closed because it is subject to approvals, has been provisionally over-subscribed. A maximum of 18,619,841 shares are expected to be issued, at a price of CDN$0.07875 per share (the "Placing") for a maximum total of CDN$1,466,312. A four month hold period will apply to the shares and issuance will be subject to TSX Venture Exchange approval. The shares will rank pari passu with the existing shares in issue of the Company.

In addition to the private placement, Roland Phelps, President & CEO, Galantas Gold Corporation, intends to, subject to approvals, enter into a shares for debt exchange on the same terms as the placement. Mr. Phelps intends to exchange debt accruing to him, as of 31st March 2016, for up to CDN$935,852 for up to 11,883,835 shares (the "Debt Exchange").

The net proceeds raised by the Placing are intended to be used for working capital purposes, to finance the Company's legal commitments in regard to its underground planning consent, finance work on conditions precedent and progress exploration activities.

A further announcement will be made in due course detailing the results of the Placing and Debt Exchange.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.